Question

1. In 2019, Nighthawk Corporation, a calendar year C corporation, has $5,620,000 of adjusted taxable income and $168,600 of business interest income. Nighthawk has no floor plan financing interest. The business interest expense for the year is $2,248,000.

   a. Assume that Nighthawk has average gross receipts for the prior three-year period of $35,200,000.

   Determine Nighthawk's current-year deduction for business interest.
   $

   b. Assume that Nighthawk has average gross receipts for the prior three-year period of $19,500,000.

   Determine Nighthawk's current-year deduction for business interest.
   $

2. Cherry Corporation, a calendar year C corporation, is formed and begins business on 10/1/2019. In connection with its formation, Cherry incurs organizational expenditures of $50,300.Round the per month amount to two decimal places. Round your final answer to the nearest dollar.

3. Determine Cherry Corporation's deduction for organizational expenditures for 2019.

4. Crane and Loon corporations, two unrelated C corporations, have the following transactions for the current year:

   Crane Loon Gross income from operations $286,000 $457,600 Expenses from operations 400,400 480,480 Dividends received from domestic corporations (15% ownership) 171,600 343,200

   Click here to access the dividends received deduction table.

   a. Compute the dividends received deduction for Crane Corporation.
   $

   b. Compute the dividends received deduction for Loon Corporation.
   $